Unit mix is defined as a mix of different number of bedroom apartments in a development or apartment complex. Normally, the number of bedrooms ranges from one to five, and any given apartment complex will have a mix of bedroom options and different floor plans for each type. Every development is trying to achieve the perfect “mix” of each type of apartment for their property, to maximize profit and keep the property occupied year round.
Read MoreThe copy and paste function in Excel saves investors so much time, but Excel isn’t always intuitive when it comes to what you need specific paste options. Paste Special provides you the option to choose the specific type of information you’d like to paste while saving you time.
Read MoreSources of capital used to fund projects come in the form of debt, equity, and cashflows. In real estate, these can be broken down into more specific categories. Read about them in the full blog.
Read MoreConditional Formatting is a feature in Excel that allows you to apply special formatting to cells that meet certain criteria. Typically, conditional formatting is used to color specific cells in order to emphasize or differentiate between values within the spreadsheet. Whether these values are certain investment return requirements, minimums on inventory levels, or cash flow levels, conditional formatting serves to organize data in a more digestible fashion.
Read MoreA Distribution Waterfall is a method of distributing money between the General and Limited Partners involved in an investment. Typically, the waterfall disproportionately allocates distributions to the General Partners after certain returns have been achieved in an effort to incentivize the General Partners to maximize returns. Distribution Waterfalls are governed by the legal documents of the partnership such as Joint Venture Agreements and Limited Partnership Agreements.
Read MoreA drawdown (aka capital call) is the legal right of a private equity firm to demand a portion of the committed capital from the limited partners to pay for a newly identified investment or expense. It is the act of transferring the promised funds to the investment target.
Read MoreEquity Markets, also common referred to as the stock market, is a market in which shares of companies are issued, bought, and sold. Equity markets facilitate the exchange of shares between both institutional and individual investors, and can be executed through multiple exchange platforms.
Read MoreThis IPMT formula gives the interest repayment for the chosen investment for each payment. It is based off of a constant payment schedule and a fixed interest rate. The parts of the function include interest, period number, periods, and amount.
Read MoreExpense recoveries are the amount of money a landlord is reimbursed by tenants to cover operating expenses at a property. Within non-residential real estate - such as retail or office buildings – tenants sign leases with agreements that specify a base rent, which may be calculated as a yearly dollar amount per rentable square foot of space, plus additional expenses.
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